Valuing Interest Payment Guarantees on Developing Country Debt

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This paper develops a technique to value guarantees on interest payments on developing-country debt, and provides some preliminary estimates of the cost of such guarantees. The cost of interest payment guarantees is not directly observable because a guarantee is a contingent obligation that becomes effective only if the debtor fails to make a... READ MORE...

Publication date: January 1990
ISBN 9781451922721
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